Ann, Home Buyer in Scottsdale, AZ

I am looking at making an offer on a foreclosure.The house sold in 12/05 for $595K and I believe the mtg was

Asked by Ann, Scottsdale, AZ Sun Aug 3, 2008

$515K when it went into foreclosure approx. 4 months ago. The bank has it priced at $410K. Are the REO homes usually priced to sell or is there any room to negotiate. The price they have it at is lower than the comps already but I can only afford to purchase it for approx $329K.
Do I have a chance or any advice would be appreciated.

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Past sales price and mortgage balance has very little to do with the actual sale price. In California, banks are putting the homes on a low prices, creating multiple offers, and ultimately a bidding war. I would hire a local Realtor (the bank pays their fee) and go from there. Good luck!
Web Reference: http://www.cindihagley.com
3 votes Thank Flag Link Sun Aug 3, 2008
Cindi Hagley, Real Estate Pro in Pleasanton, CA
MVP'08
Contact
Ann-

I would say you likely have no chance at $329K for a bank owned home currently priced at $410K. I hate to say it, but the bank may negotiate 5% off, but you are looking for 25% off...that's almost unheard of. Banks rarely miss the mark by that much. As well, you've confirmed that it's already the lowest price that recent comps, which is something the banks know too. If it doesn't sell in 40 days, they'll likely lower by 4-5%, in 120 days, if it's still on the market, they may be more willing to entertain your offer, but if it's been on the market for less than 30 days, I can't see how they would think that was the best offer they were ever going to get.
2 votes Thank Flag Link Sun Aug 3, 2008
It would be best to contact a REALTOR in you area. However, usually REO homes are already priced to sell...the banks do not want to hold on to these. That doesn't mean that you can't offer a lower price, but understand that there may be multiple offers coming in. When looking at an offer, the banks are going to consider not only the price, but if you are asking for them to help out with any closing costs as well as how long out you are asking for the closing to be held. I have heard of banks taking an offer that was $20K less than another offer just because the buyer wanted to close in 10 days.

If you are interested, my company has a network of Top Buyers agents in you area and I would be happy to help put you in contact with a knowledgeable REALTOR. Just let me know if I can be of assistance.

Angel Head
Coldwell Banker Residential Brokers
678-618-1336
2 votes Thank Flag Link Sun Aug 3, 2008
Steve is right on, every blue moom you will be able to get such an offer accepted, but only if the bank has sat on the property for a very long time and is ready to move it. You can get such an offer accepted, but be prepared tp have patience and to offer on many many properties. And if you do get one accepted, chances are that the property would need quite a bit of work. If it is a desireable house, chances are pretty high that by the time the bank is ready accept such a low offer, it would have sold already. Good luck in your search!
Web Reference: http://www.TeamKearney.com
1 vote Thank Flag Link Sun Aug 3, 2008
Wait a year or two, it may be in your price range.
0 votes Thank Flag Link Fri Aug 22, 2008
Ann,

It ultimatley is up to the bank and the will not sell the home for much less than an appraisal on the home.
You can submit the offer and wait, if you have an agent they should be walking you through the steps and the process of a short sale.

Feel free to call if you have any questions!
0 votes Thank Flag Link Tue Aug 5, 2008
No one can give you a reliable answer. The best way to find out is to make an offer. In general these REO properties are priced slightly below market and that is what they sell for. There is no reason for a bank to sell it for a price too much below market price, especially in an in-demand market like Scottsdale.
0 votes Thank Flag Link Sun Aug 3, 2008
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